When are the US durable goods orders and how could they affect EUR/USD?

US durable goods orders overview

Monday's US economic docket highlights the release of durable goods orders data for November. The US Census Bureau is scheduled to release the monthly report at 13:30 GMT and consensus estimates point to solid growth of 1.5% during the reported month as compared to a downwardly revised reading of 0.5% in October.

Meanwhile, core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are anticipated to register only modest growth of 0.1% in November as against 0.5% rise recorded in the previous month. On the other hand, non-defense capital goods orders (excluding aircraft and parts) - a proxy for business investment - are forecasted to fall 0.3% as against 1.1% growth recorded in October.

How could it affect EUR/USD?

As Joseph Trevisani – Senior Analyst FXStreet – explains: “The Federal Reserve move to a neutral policy in October after three straight reductions in the fed funds rate briefly put the dollar on the defensive. The future depends on a resumption of stronger growth for the US economy. In that the capital spending category of durable goods is an important indicator.”

Meanwhile, Valeria Bednarik – FXStreet's own Chief Analyst – offered a brief technical outlook and important levels to trade the EUR/USD pair: “The EUR/USD pair is trading above the 61.8% retracement of its December rally at 1.1065, and below the 50% retracement of the same advance at 1.1090. In the 4-hour chart, the pair remains below its 20 and 100 SMA, while technical indicators hover within negative levels without directional strength. Beyond the mentioned 1.1090 resistance, the pair has room to extend its advance to 1.1120, but little should be expected until the release of US data.”

Key Notes

   •  November Durable Goods Orders Preview: US-China trade and business investment

   •  EUR/USD Forecast: Marginally higher, at risk of falling

   •  EUR/USD: Bounce still capped below 1.1100 ahead of US data

About US durable goods orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.